Bitcoin Hovers Near Critical Retracement Level
Bitcoin's price has reached a critical confluence zone as it hovers around $70,960. This level is significant because it represents the 50% Fibonacci retracement of the entire 2022-2025 rally from $15,680 to $127,710.
The weekly chart shows that Bitcoin is trading within an ascending channel, with price currently pressing against the lower boundary. The Sigmanomics forecast models suggest a bearish bias in both the short-term and mid-term outlooks, but a sideways trend is predicted for the longer term.
While the 0.618 Fibonacci level at $58,475 acts as a key support level, breaking below it could signal a deeper retracement towards the lower channel support. On the other hand, invalidation of an upside move would occur near $80,814-$85,238 across short-term horizons.
The Relative Strength Index (RSI) on the weekly chart is approaching oversold territory at 35.5, which could limit further downside in the near term.